LMI CONCEPTS, USES and METHODOLOGIES

LABOR MARKET DEFINED

A set of economic institutional relationships within which employers recruit workers and where workers seek employment. It is not necessarily a physical place but rather a general setting for the operations of labor demand and supply

Labor Market Information (LMI) Defined

Any part of the labor market, the way it or any part of it functions, its problems, the opportunities which may be available to it, and the employment related intentions or aspirations of those who are part of it .
In simple terms, LMI is the organization and the presentation of facts, statistical and otherwise, arising out of the functioning of the labor market.

Importance of Labor Market Information

The importance of LMI is gauged from the principal uses for which such information is produced:
1.

Jobseeker - Information on vacancies, hiring requirements of industries, wages and compensation and other related information will guide the jobseeker in his search for employment

Importance of Labor Market Information.

2.

Labor Market Facilitators (Employment Service Officers/Placement and Personal Officers) - familiarity with hiring requirements of employers and qualification/characteristics of jobseekers will guide employment service officers in the effective matching of men and jobs.

Importance of Labor Market Information

3.

Employment Guidance Counselors

Make use of labor market information in their effort to give meaningful employment counseling to jobseekers and would-be-entrants to the labor force.

Importance of Labor Market Information

4.

Government Planners and Policy makers Rely on LMI in making more meaningful and effective employment and manpower policies and vocational guidance and training programs

5. Workers and Employers Organizations - Rely on LMI in manpower planning within firms and in monitoring industrial trends and changes.

Priority Areas of an Adequate Labor Market Information Program

Common types of labor market information 1. Basic Statistical Information

Total population Total Labor Force - Employment - Unemployment - Underemployment Labor Shortages - Unfilled vacancies - Hours worked - Multiple job holders

Priority Areas of an Adequate Labor Market Information Program (cont)

Migration Education and Training - School/University Population - Enrollment in Vocational Training Institutions - Apprentices and Learners Wage rates and earnings Work stoppages Productivity

Priority Areas of an Adequate Labor Market Information Program (cont)

Common types of labor market information 2. Non-statistical (Qualitative Information)
Employment problems that are particularly acute for specific categories of workers Employment problems related to the recruitment, retention and effective utilization of manpower Information on the function and adequacy of educational and training programs

Priority Areas of an Adequate Labor Market Information Program (cont)

Labor legislation and employment practices

Problems relating to the mobility of labor

Information relating to practices of multiple job holding

Essential Aspects of Labor Market Information Program

1. Should be sufficiently COMPREHENSIVE for the purpose for which it is intended - must be able to provide a realistic assessment of the major over-all current manpower and employment pattern, trends and problems 2. Information should be sufficiently UP-TO-DATE for the purpose for which it is intended - should be collected and analyzed on a regular basis

Essential Aspects of Labor Market Information Program

3. Should be AVAILABLE to the users, when it is required by them and in the form in which it is required Should make use of all the RELIABLE information available

4.

5.

Should have the CONTINUOUS SUPPORT and DIRECT INVOLVEMENT of all major producers and consumers of labor market information

The Generation and Collection of Labor Market Information

Common Methods of Data Collection 1. 2. 3. 4. 5. Censuses Sample Survey Administrative Records Registration Requirements for Certain Sectors Legislative Provision Requiring the Collection of Specific Information Econometric Models for Manpower and Employment Forecasting Special Studies on Interrelationships in the Functioning of the Labor Market

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